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Asked a question 3 years ago

What are the objectives of Business?

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An objective is the starting point of

business. Every business is directed to

the achievement of certain objectives,

which refer to all that the business

people want to get in return for what

they do. It is generally believed that

business activity is carried on only for

profit. Business persons themselves

proclaim that their primary objective is

to produce or distribute goods or

services for a profit. Every business is

said to be an attempt on the part of

business people to get more than what

has been spent or invested or, in other

words, to earn profit which is the excess

of revenue over cost. However, it is

widely accepted nowadays that

business enterprises are part of society

and need to have several objectives,

including social responsibility to

survive and prosper in the long run.

Profit is found to be the leading objective

but not the only one.

Although earning profit cannot be

the only objective of business, its

importance cannot be ignored. Every

business is an attempt to reap more

than what has been invested and profit

is the excess of revenue over cost. Profit

may be regarded as an essential

objective of business for various

reasons: (i) it is a source of income for

business persons, (ii) it can be a source

of finance for meeting expansion

requirements of business, (iii) it

indicates the efficient working of

business, (iv) it can be taken as society’s

approval of the utility of business and

(v) it builds up the reputation of a

business enterprise.